timberland pocket book
Post on 06-Apr-2016
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GROUP 1:
Mongkol Ayiku – 5613532
Salman H. Nahian – 5648306
M. Ishraq Hossain – 5628303
Tia Taveepanichpan - 5626816
Theresa Wuthongcharernkun – 5625118
Duong Bich Ngoc – 5628332
1. BACKGROUND
Timberland is an American manufacturer and retailer of outdoors wear with a
focus on footwear. The company also sells clothes, watches, glasses and
leather goods. The headquarters of the company are located in Stratham,
New Hampshire. The founder of this company is Nathan Swartz. He began his
career in Boston as a stitcher. In 1952 he bought half an interest in Albighton
Shoe Company in South Boston .In 1955 he bought remaining interests in the
company and brought his sons into the company. Swartz family introduced
innovative ideas and technology in the footwear industry.
In 1969 they moved their manufacturing operations to New Hampshire and
by the time in 1973 the brand name “Timberland” was introduced for the
waterproof leather boots produced by the company. The brand became so
popular that the company name was officially changed to “The Timberland
Company”. In the 80s timberland began to expand its company
internationally firstly in Italian market and later on many other countries.
Under the leadership of Sidney Swartz one the founder’s son the company
began to become a lifestyle brand adding clothing and women shoes to its
products. In 2006 the company acquired “Howies” a welsh clothing
company. In 2011,Timberland Company signed a definitive merger
agreement with VF Corporation approximately $2 Billion. Nowadays in
addition to its USA stores it also operates stores worldwide including Thailand.
2. GROWTH STRATEGY
Product development: One of the growth strategies of Timberland company
is their product development. They continuously redesign their existing
products. They also make new line of products. In the time of its establishment
they only used to make waterproof leather shoe but nowadays its also make
casual shoe and they also expanded their product line by introducing
backpacks, watches, glasses, women clothing’s etc. They also redesign this
existing product line to be competitive in market.
Market development: Timberland used to operate only in USA. But in
nowadays they operate internationally. They expanded their market vastly.
They also made merger agreement with VF Corporation, which helped them
to become larger. Timberland Company also created new segments over
period of time such as women fashionable clothing, shoes, watches etc.
nowadays timberland have its operation divisions in Uk, France Germany,
Singapore, Taiwan, Malaysia, Thailand, Italy, Hong Kong. Most of this
Operating division supports the sale of their company through retailers and
specialty stores and factory outlet stores in their respective countries
Diversification: timberland used diversification for its growth; first they used to
make leather boots. But in 1990 they started to make backpacks, kids wear,
even women clothing and shoes. They also make fashionable clothes and
casual shoes too. This diversification helped them to become larger and
expanded the Brand name “timberland” internationally. In 2007 Timberland
was named the 78th best employer in the USA.
.
3. SWOT ANALYSIS
The Timberland Company is a manufacturer, marketer, and
distributor of footwear, apparel, and accessories throughout the
world, with a focus on boots and performance footwear. The
Timberland Company brand names include Timberland, Timberland
PRO, Timberland Boot Company, SmartWool, Mion, GoLite, Howies,
and IPATH, most of which are sold through department stores and
independent retailers, shoe stores, athletic stores, company-branded
specialty stores, factory outlet stores, and franchised retail stores, as
well as online. Timberland’s strong financial position and wide-
ranging product portfolio create exciting opportunities moving
forward, but issues exist around its brand equity and operational
performance.
Strengths
Strength Operating
Margin Company
Micro
Environment
Geographic Customer
Diversification Company
Micro
Environment
Wide Brand Portfolio Company Micro
No debt Company Micro
Effective CSR activities Company Micro
Weaknesses
Low return on equity Company Micro
High Selling, General
and Administrative
Expenses Margin
Company Micro
Declining US Sales Company Micro
Limited Oversight on
Product and
Distribution quality
Company and
Corporate Partner Micro
Opportunities
Growing e-retail
Industry Technology Macro
Strong emerging
market growth
expected within
industry
Corporate partner Micro
Recovering global
economy Economic Macro
Focus on Women’s
brands Demographics Macro
Import duties reduced
in the US Economic Macro
Threats
Increase in
counterfeit products Competition Micro
Intense Competition Competition Micro
Family Ownership /
Agency Risk Company Micro
Unfamiliar with
emerging market Company Micro
4. SEGMENTATION – TARGET - POSITION
Segmentation: The product line carters the existing target demographic. It is
appealing to Outdoor Enthusiasts because it promotes the lifestyle they lead
while providing Timberland quality. These boots embrace classic styling with a
new twist, keep in the Fashionistas interested. Workers appreciate the rugged
design and durability. This line also affords customers the satisfaction of doing
their part in caring for the environment. Timberland’s history of catering these
three demographics has been unsurpassed, and because of that, Timberland
is confident that customers will continue to purchase Timberland products.
Target: Strategy: Timberland’s marketing strategy is to implement three
different types if consumers that hobbies include being outdoors and working
long hours in rough terrain environments and fashionist enthusiasts in boots.
Their three target segmentations are: workers, outdoor enthusiasts and
fashion. Not only do they target outdoor people but also target fashion
editorials for men and women that particularly like boots.
Target Market:
Workers: construction workers are required for full safety equipment including
footwear in dangerous environments.
Outdoor Enthusiasts: People that enjoy outdoor activities such as hiking and
walking long distances in nature.
Editorial Fashion (Women and Men): Particularly people that are into the boot
fashion, they involve various styles for the customers to feel a sense of self-
actualization.
Their strategy is to focus on political, environment, social trends and
technological environments in order to remain in the top market share.
Brand Positioning: Timberland position their brand as a high fashion brand for
men and women who have a passion for adventure. Company has powerful
image that goes way beyond outdoor gear. Company has become an
entire lifestyle based on strength, perseverance, and the power of you. It’s a
brand that is deeply rooted in emotional marketing. They sell their products
to customers from the ego up, not the product features down and they never
let it flow the opposite way. The company needs to start being a part of the
emotional manufacturing business instead of the product manufacturing
business. This way help them match with how consumers feel.
5.1. Product Line
The Timberland Company designs, engineers, markets, distributes and sells
premium quality footwear, apparel and accessories for men, women and
children, as well as a line of professional footwear and apparel under the
Timberland PRO® series sub-brand.
Footwear
Boots
Hiking
Shoes
Clothing
Outerwear
Tops & Dresses
Pants &Skirts
Accessories
Hats & Scarves
Gloves & Mittens
Socks & Slippers
Sunglasses
Handbags & Wallets
Backpacks &Luggage
Belts
Product Care & Laces
Umbrellas
Tech Cases
Watches
5.2. Branding Elements
There are two branding elements that Timberland is using. The first one is
Brand Name, which is the spoken component of branding. It can describe
the product or service, product characteristics, or be composed of words
invented or derived from colloquial or contemporary language.
The second branding element incorporated in this brand is Logos and
Symbols. Logos are visual branding elements that stand for corporate names
or trademarks, while Symbols are Logos without words.
5.3. Branding Strategy:
- Brand Ownership:
According to the corporate timeline on Timberland’s official website and
Encyclopedia.com, Timberland Company began a retailer/store brand, also
known as “private-label brand”. In private-label brands in some cases
develop their own products, whereas in other cases they develop the design
and specifications for their retailer/store brands. But after their Timberland
Boots became a major success in the late 1970’s, the firm discontinued
manufacturing for others and concentrated on Timberland boots. Which has
now made Timberland Company a Manufacturer Brand, this means that the
brand is owned and managed by the manufacturer.
- Naming Brands and Product Lines:
Timberland uses Family Brands. A Family Brand is when a firm uses its own
corporate name to brand all its product lines and products. This can be seen
in the way that despite the fact that the firm has different names for certain
collections in their firm, the firm name “Timberland” is inserted before each of
the collection names. For example one of their collections “Earthkeepers”, will
be displayed on their product as “Timberland Earthkeepers”. This
demonstrates that they are using their own corporate name to brand all their
product lines and products.
- Brand and Line Extensions:
Due to Timberland releasing their products as collections, this firm has mainly
used Brand Extension. Brand extension refers to the use of the same brand
name in a different product line. For example, Timberland’s original Product
Line was boots and other footwear. But now they also produce many other
accessories and apparel such as, various men’s and women’s apparel,
watches, gloves, leather care products, and handbags etc.
In conclusion for branding strategies, Timberland incorporates Brand
Ownership, Family Brands, and Brand Extensions as part of branding strategies
for its firm, but no Co-Branding or Brand Licensing has taken place as part of
this firms branding strategy and not a significant amount of Brand
Repositioning, as their firm is already widely established and they are
consistently producing new collections which target their existing wide
market.
6. Product Life Cycle
Timberland is in its growth time now. The company recorded revenues of
$1,429.5 million in the financial year ended December 2010 (FY2010), an
increase of 11.2% over FY2009. The operating profit of the company was
$134.3 million in FY2010, an increase of 73.3% over FY2009. The net profit was
$96.6 million in FY2010, an increase of 70.6% over FY2009.
“2014 will mark the most successful year in Timberland’s history – another clear
example of VF’s powerful business model that enables brands to connect
deeply with consumers, and drive growth and profitability, while preserving a
unique DNA and culture,” said Eric Wiseman, VF Corporation President,
Chairman and CEO. “Since our acquisition in 2011, our work with the
Timberland team has created an incredibly strong foundation for its next
chapter of growth. We are proud of the progress Timberland’s made, and
we’re bullish on the opportunity for this amazing brand.”
According to the figure, Timberland is still developing to maximize the profit
as well as have a competitive advantage with their competition. As the
present social trend, Timberland is not the only one fashion company care
about environment and fashion.
7. PRICING TACTICS
- Leader price: Timberland gives a big promotion to their customer. This is
like the biggest promotion event of the year of them.
- Quantity discount: Timberland gives more amount of discount when
you buy more.
- Markdown: Timberland gives a 10% discount on every product.
- Seasonal discount: In end of the year , Timberland give a sale discount up
to 50% to their customer as a midyear promotion
8. MARKETING CHANNEL
Timberland use Pull marketing strategy
A marketing channel is a set of practices or activities necessary to transfer the
ownership of goods, from the point of production to the point of
consumption. It is the way products and services get to the end-user, the
consumer; also known as a distribution channel. A marketing channel is a
useful tool for management, and is crucial to creating an effective and well-
planned marketing strategy.
Timberland operates with 28 distributor partners in 60+ countries globally.
Within these countries, 208 stores are standalone, 124 stores are corners, 24
are outlets, and eight are sub-franchises.
9. RETAIL
Distribution Intensity: Selective
Retailer type: General Merchandise Retailers
Specialty
10. Integrated Marketing Communication
- Timberland discounts their product price 60%. They use markdown in the
pricing tactic
- Timberland will free shipping cost if we buy product $100
- Timberland uses quantity discount in their pricing tactic
Timberland has a very good
relationship with social and
environment
Conducted by:
Mongkol A. --- Salman H. N. --- M. Ishraq H.
Tia T. --- Theresa W. --- Duong B.
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